Answer:
d. increases assets, increases stockholders' equity
Explanation:
The journal entry for earning revenue is shown below:
Cash A/c Dr. XXXXX
To Sales revenue A/c XXXXX
(Being revenue is earned)
Since the revenue is earned so we debited the cash account which increases the asset balance and credited the sales revenue account which increases the stockholders' equity balance.
Answer:
Nominal rate of return= 10.96%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.rise in the price of money
<em>Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation. </em>
<em>Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
</em>
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
N = ( (1+R) × (1+F)) - 1
N- nominal rate, R-real rate, F- inflation
Nominal rate of return =(1.038)× (1.069) - 1 = 0.109622
Nominal rate of return = 0.109622
× 100 = 10.96%
Nominal rate of return= 10.96%
Answer:
D. 2.97
Explanation:
The net operating asset turnover ratio is used to measure the efficiency of operating assets and to determine how well these assets are used to generate sales. The assets that are tested here are operating assets that are those assets which are required to run the day-to-day operations of the business. For instance, Property, plant, and equipment, inventory, and cash etc. Investments and unutilized assets do not fall under this category.
Here are are required to calculate the net operating asset turnover ratio, which is calculated as follows:
Net operating asset turnover = Net sales / Net operating assets
⇒ Net operating asset turnover for 2016 = 117,351 m / 39,502 m = 2.97.
It means that for each dollar invested in the operating assets generates $2.97 of revenue.
Answer: Deficit; higher; a decrease
Explanation:
<em>The term crowding-out effect refers to a situation in which a government </em><em><u>deficit</u></em><em> results in</em><em><u> higher</u></em><em> interest rates, causing </em><em><u>a decrease</u></em><em> in private spending on investment and consumer durables.</em>
The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.
If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.
As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of <em>crowding out</em> the private sector.
